Custodian Investment has said that the company through EverQuest Acquisition LP comprising Custodian Investment Plc, Aion Investment and Evercorp Industries has entered into a share sale and purchase agreement to purchase 100 per cent equity stake in FBNQuest Merchant Bank Limited, a wholly owned Subsidiary of FBN Holdings Plc.
This was contained in the company’s notice to the Nigerian Exchange Limited (NGX) seen by NewsNGR.
According to the statement, the purchase is in alignment with the Company’s long-term strategy to build a robust investment Group.
The statement reads, “In accordance with the Nigerian Exchange Limited Rulebook, we hereby notify the Nigerian Exchange Limited (NGX) and the investing public that Custodian Investment Plc through EverQuest Acquisition LP (comprising Custodian Investment Pic, Aion Investment and Evercorp Industries) has entered into a Share Sale and Purchase Agreement to purchase 100 per cent equity stake in FBNQuest Merchant Bank Limited, a wholly owned Subsidiary of FBN Holdings Plc.
“This purchase is in alignment with the Company’s long-term strategy to build a robust investment Group.”
The statement signed by the Company Secretary, Adeyinka Jafojo, noted that following the competitive bid process, EverQuest Acquisition LP was selected as the preferred bidder.
The completion of the sale is subject to approvals from the relevant regulatory authorities.
The company’s pre-tax profit surged by an impressive 355 per cent year-on-year to reach N11.97bn far the Q1 2024.
The growth follows a robust 2023, where Custodian saw a 127 per cent year-on-year increase in profit to N25.99bn well above its five-year compound annual growth rate (CAGR) of 35 per cent.
The standout performance was driven by a significant 38 per cent increase in insurance service revenue, totaling N28.29bn in Q1 2024 alone, nearly half of the total revenue for the entire previous year.
This growth effectively offset related expenses, resulting in a significant insurance profit of N7.23bn.
The improved insurance service profit of N7.23bn, along with significant net insurance finance income and other revenue streams, caused the company’s net income and pre-tax profit to increase by 181 per cent and 355 per cent, respectively.
This is notably different from 2023, where the profit was also significantly boosted by an unrealized foreign exchange gain of N17.578bn.